“Various industry participants are in the process of finalizing the last details for implementation of AACS,” said Toshiba in a statement. “Because the DVD Forum has adopted AACS as an integral part of the HD DVD format, Toshiba will launch its HD DVD products only after AACS is finalized.”

The company said it remained on schedule to launch HD DVD in the U.S. in the first quarter 2006 — apparently at the same time or prior to a Japanese launch. A Toshiba spokesperson told Reuters said she couldn't imagine a U.S. launch superseding one in Japan.